« Top Headlines » Open DEMAT Account in 24 hrs  ITR Filing: 6 Ways to Get Exemption on Income Tax  Income Tax Return Filing: 10 Mistakes To Avoid When Filing ITR For AY 2024-25  Old vs New Tax Regime: Who should move to the New Tax Regime from the old one?  Income Tax Calculator FY 2023-24: How To Know Your Tax Liability Online On IT Dept's Portal?  BackBack Income Tax Act amendment on cards on tax treatment of MSME dues  ITR-1, ITR-2, ITR-4 forms for FY 2023-24 available for e-filing. Check details here  Income tax slabs FY 2024-25: Experts share these 8 benefits for taxpayers in new income tax regime  How To File ITR Online - Step by Step Guide to Efile Income Tax Return, FY 2023-24 (AY 2024-25)  Old or new tax regime for TDS on salary? This post-election 2024 event will impact your tax planning  What Are 5 Heads Of Income Tax?  Income Tax Dept releases interim action plan for FY25 on tax collection, refund approvals «  New IT Act in next session... For taxman, savings must all be the same... » MAT on real February, 15th 2008 MAT on real income only The Mumbai Tribunal has held that minimum alternate tax is levied on real book profits which have been earned by the companies. It cannot be levied on the artificial income, which has not accrued to the companies, but has been credited to the profit and loss account as per the accounting policies. In the case considered by the tribunal in this respect, the assessee was entitled by a scheme of government, to defer the payment of the sales tax collected, and was crediting the same to separate account as deferred liability. In the relevant year it revalued the liability at its present value and credited the difference to the profit and loss account. While computing book profits under section 115JA, it deducted the revaluation profit. The assessing officer disallowed the same. The Tribunal observed that items not having the character of the income should not form part of the book profit even though such items are credited to the profit and loss account. Deduction for demat expenses THE Bangalore Tribunal has recently said that amount paid to NSDL as one-time charges for converting its shares from physical certificate into dematerialise form are allowable expenditure under section 37(1). The assessee company paid certain amount to NSDL as one time charges for converting its shares from physical form to dematerialised form and claimed deduction of the same as a revenue expenditure. The AO held that since it was the liabilities of the respective shareholders to get shares converted into demat form and not that of the assessee-company, hence the expenditure was not allowable and even if liability was to be treated as that of assessee, the same was not allowable as revenue expenditure as the assessee derived an enduring benefit.